Budget 2011: key points

budget 2011

The key points from George Osborne's March 2011 Budget speech.

Tax

  • Personal tax allowance to rise by £630 to £8,105 in April 2012 - a real increase of £48 a year, or £126 in cash terms.
  • 50% tax rate to be a temporary measure.
  • Consultation on long-term plan to merge income tax and National Insurance
  • Corporation tax to be cut by 2% from April and 1% in each of the following three years
  • Charge on non-domiciled taxpayers to increase from £30,000 for those here for seven years to £50,000 for those in the country for 12 year
  • Rate relief holiday for small businesses extended to October 2012
  • From April 2012, people leaving 10% or more of their estate to charity will enjoy 10% reduction in inheritance tax, benefiting charities by £300m
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Public sector

  • Pay rise of £250 for armed forces, prison, NHS, teachers and civil servants earning under £21,000.
  • Hutton recommendations on public sector pensions accepted. Single-tier flat-rate state pension to be created, expected to be about £140-a-week.

Duties

  • Planned air passenger duty rise will be delayed for a year
  • Fuel duty cut by 1p a litre from 6pm today (23 March 2011) and 1p per litre petrol planned rise in duty delayed for a year

Education

  • Funding for 24 new university technical colleges for vocational training (up from 12) 
  • 100,00 work experience placements over two years. 10,000 more apprenticeships totalling 250,000 apprenticeships over next four years

Enterprise

  • £350m worth of regulation on businesses will be removed.
  • Relief for entrepreneur tax to be doubled to £10m.
  • Entrepreneurs relief scheme to be doubled to £10m from 6 April 2011.
  • Small business rate relief holiday extended by one year to October 2012 at a cost of £370m.
  • 21 new enterprise zones to be funded, including in Manchester, Birmingham and London. Ten others to be named in the summer.
  • Income tax relief on enterprise investment scheme to increase from 20% to 30%.
  • Small companies' research and development tax credit will rise to 200% in April and 225% in 2012.

Infrastructure

  • Government to invest £200m in regional railways.
  • £100m fund towards helping councils repair potholes.

Budget reaction 

How does it affect you? Share your reaction to the 2011 Budget with other Mumsnetters on our Politics Talk board.

 

 

 

 

 

Last updated: 28-Mar-2011 at 10:42 AM